Fraud Prevention for Retirees

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on July 05, 2023

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Overview of Fraud Prevention for Retirees

Fraud prevention for retirees refers to the various strategies and precautions taken to safeguard retired individuals from falling prey to scams, identity theft, and other fraudulent activities.

Fraud is a deliberate deception or misrepresentation made for personal gain, often resulting in financial losses for victims. Unfortunately, fraudsters frequently target retirees due to their perceived vulnerability and accumulated savings.

Common Types of Fraud Targeting Retirees

Investment Scams

Ponzi Schemes

Ponzi schemes involve a fraudulent investment operation where returns are paid to existing investors using funds contributed by new investors. These schemes eventually collapse when there are not enough new investors to pay returns to earlier investors.

Pump-and-Dump Schemes

In pump-and-dump schemes, fraudsters buy a large amount of low-priced stock and then spread false or misleading information to inflate the stock's price.

Once the price has risen, they sell their shares for a profit, causing the stock price to plummet and leaving investors with significant losses.

Health Care Fraud

Medicare Scams

These scams involve fraudulent billing for medical services or equipment or offers of free medical equipment or services in exchange for personal information. Scammers often target Medicare beneficiaries and use their personal information to submit fraudulent claims.

Fake Prescription Drug Scams

Fraudsters may sell counterfeit or expired prescription drugs at discounted prices, posing a serious risk to the health and well-being of retirees who rely on these medications.

Identity Theft

Phishing Scams

Phishing scams use fraudulent emails, texts, or phone calls to trick retirees into providing sensitive information, such as Social Security numbers, bank account information, or login credentials.

Tax Identity Theft

This type of identity theft occurs when a scammer uses a retiree's personal information to file a fraudulent tax return and claim a refund.

Lottery and Sweepstakes Scams

These scams involve notifying retirees that they have won a lottery or sweepstakes but must first pay taxes or fees before receiving their prize.

Grandparent Scams

Scammers posing as grandchildren in distress call or email retirees, requesting money to help with an emergency, such as legal trouble or medical bills.

Charity Scams

Fraudsters solicit donations for fake charities or use high-profile disasters to take advantage of retirees' generosity.

Home Repair Scams

Scammers offer unsolicited home repair services, often demanding payment upfront and then failing to complete the work or providing substandard services.

Telemarketing Scams

Fraudsters use high-pressure tactics to sell overpriced or nonexistent products and services over the phone, targeting retirees who may be more likely to trust unknown callers.

Common Types of Fraud Targeting Retirees

Warning Signs of Fraud

High-Pressure Sales Tactics

Be wary of aggressive sales tactics, such as limited-time offers or threats of missed opportunities.

Promises of High Returns with Little or No Risk

If an investment sounds too good to be true, it probably is.

Unsolicited Offers

Exercise caution when receiving unsolicited offers, as they may be fraudulent.

Requests for Personal Information

Legitimate organizations will not ask for sensitive information over the phone or email.

Unlicensed or Unregistered Sellers

Always verify the credentials of anyone offering investment or financial services.

Payment in Cash or Wire Transfers

Avoid making cash payments or wire transfers, as these methods are difficult to trace.

Fraud Prevention Strategies for Retirees

Educate Yourself About Common Scams

Awareness of common scams can help retirees recognize and avoid potential fraud.

Verify the Legitimacy of an Offer or Organization

Research the organization or individual offering a product or service before making a decision.

Protect Personal Information

Secure Online Presence

Use strong, unique passwords for online accounts and enable two-factor authentication when available.

Dispose of Sensitive Documents Properly

Shred documents containing personal information before discarding them.

Be Cautious of Unsolicited Offers

Treat unsolicited offers with skepticism and verify their legitimacy before engaging.

Consult a Trusted Advisor

Discuss financial decisions with a trusted family member, friend, or professional advisor.

Monitor Financial Accounts Regularly

Regularly review credit card and bank statements to detect any unauthorized transactions.

Register for Do Not Call Lists

Sign up for the National Do Not Call Registry to reduce the number of telemarketing calls received.

Fraud Prevention Strategies for Retirees

Reporting Fraud

Recognizing the Importance of Reporting Fraud

Reporting fraud not only helps protect oneself but also aids in preventing the scammer from victimizing others.

Resources for Reporting Fraud

Federal Trade Commission (FTC)

Retirees can file a complaint with the Federal Trade Commission (FTC) through their online complaint assistant. The FTC works to prevent fraudulent activities and provides resources to help consumers protect themselves from scams.

Financial Industry Regulatory Authority (FINRA)

Retirees who suspect investment fraud can report it to Financial Industry Regulatory Authority (FINRA), a non-profit organization authorized by the US government to regulate investment firms and professionals.

State Attorney General Offices

Retirees can contact their state attorney general's office to report any fraudulent activity they have experienced. Many state attorney general's offices have consumer protection divisions dedicated to investigating and prosecuting fraud.

Local Law Enforcement

Retirees can also report any fraud-related incidents to their local police department. While they may not have the jurisdiction to investigate complex fraud cases, they can take steps to ensure that the incident is reported to the appropriate authorities.

Steps to Take After Reporting Fraud

Notify your financial institutions, place a fraud alert on your credit reports, and monitor your accounts for further suspicious activity.

Recovery from Fraud

Emotional Support and Counseling

Seek support from friends, family, or professional counselors to cope with the emotional impact of fraud.

Financial Recovery

Credit Monitoring

Sign up for credit monitoring services to keep an eye on your credit reports and detect any fraudulent activity.

Fraud Alerts

Place a fraud alert on your credit reports to prevent unauthorized accounts from being opened in your name.

Identity Theft Protection Services

Consider enrolling in identity theft protection services to help prevent future instances of identity theft and assist in recovery efforts.

Rebuilding Credit and Reputation

Work diligently to restore your credit and reputation by disputing fraudulent items on your credit reports, paying bills on time, and maintaining low credit card balances.


Fraud prevention for retirees involves various strategies and precautions taken to safeguard retired individuals from falling prey to scams, identity theft, and other fraudulent activities.

Fraudsters frequently target retirees due to their perceived vulnerability and accumulated savings.

Common types of fraud targeting retirees include investment scams, health care fraud, identity theft, lottery and sweepstakes scams, grandparent scams, charity scams, home repair scams, and telemarketing scams.

Retirees should be aware of warning signs of fraud, such as high-pressure sales tactics, promises of high returns with little or no risk, unsolicited offers, requests for personal information, unlicensed or unregistered sellers, and payment in cash or wire transfers.

Retirees can protect themselves from fraud by educating themselves about common scams, verifying the legitimacy of an offer or organization, protecting personal information, being cautious of unsolicited offers, consulting a trusted advisor, and monitoring financial accounts regularly.

Retirees should report fraud to authorities such as the Federal Trade Commission (FTC), Financial Industry Regulatory Authority (FINRA), state attorney general offices, and local law enforcement.

Recovery from fraud involves emotional support and counseling, financial recovery, and rebuilding credit and reputation.

Fraud Prevention for Retirees FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.

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